Finance Minister Nirmala Sitharaman delivered the budget presentation for 2025 where the budget targets three main objectives which are economic recovery alongside development and sustainability. The budget builds national economic resistance while upgrading facilities that will serve as the basis for extended development. The budget has established priority toward infrastructure development along with digital economy advancement and rural expansion and clean energy initiatives.

Key Announcements of Union Budget 2025

• Focus on Infrastructure Development - Nation Building at Scale

1. The infrastructure sector receives ₹10 lakh crore from government budget allocation for development of roads, railways and urban transport systems.
2. Establishment of Smart Cities with improved connectivity and sustainable urban planning.
3. The National Infrastructure Pipeline (NIP) version 2.0 will serve as an instrument to boost private investment in infrastructure development.

• Digital Economy and Technology

1. A National Data Centre establishment provides better digital governance through improved data management capabilities.
2. Focus on AI, blockchain, and 5G deployment for faster digital transformation.
3. Strategic funding operates to establish workforce training initiatives which develop digital competencies as well as adaptability skills for workers.

• Sustainability and Green Energy

1. Two categories of renewable energy receive funding from the budget allocation of ₹1 lakh crore which supports solar projects and wind power generation alongside EV adoption.
2. Introduction of green bonds to fund sustainable projects and combat climate change.
3. Companies accessing tax advantages by using renewable energy sources and implementing green technologies.

• Healthcare and Education

1. The government plans to enhance investments for public health infrastructure alongside mental health program initiatives.
2. Enhanced education budget, especially for STEM programs and vocational training.
3. Underprivileged students will gain access to scholarships which allow them to seek higher education.

• Boosting Rural Development

1. Emphasis on farmers’ welfare with an allocation to strengthen irrigation systems, farm-to-market supply chains, and agricultural reforms.
2. The government plans to implement rural housing schemes with financing support for people who want to construct their residences.

Significant Changes in Union Budget 2025

• Tax Reforms:

1. Individuals earning up to INR 12 Lakh annually will now pay zero income tax under the new tax regime.
2. The standard tax deduction for salaried individuals is now INR 75,000, effectively making income up to INR 12.75 Lakhs tax-free.
3. The government decreased corporate tax rates specifically for MSMEs to promote their growth.
4. Tech companies would start operating under a new taxation framework whose main purpose is to achieve compliance and support innovation.

• TDS and TCS Adjustments:

1. Senior Citizens Relief: The TDS (Tax Deducted at Source) threshold on bank interest for senior citizen is raised from INR 50,000 to INR 1,00,000.
2. Higher Rent Limit for TDS: The TDS threshold on rental income is increased from INR 2,40,000 to INR 6,00,000, benefitting property owners.

• GST Modifications:

1. The GST simplification measures decreased the administrative requirements businesses in the small category have to follow.
2. The GST system will offer concession rates for environment-friendly goods to promote sustainable practices.
3. Reduced GST rates on electric vehicles and solar energy products.

• Public Welfare Schemes:

1. The rural scheme PM Kisan Samman Nidhi will receive growth through additional beneficiaries from rural areas.
2. A significant portion of financial resources has been set aside for the Scheduled Caste (SC) and Scheduled Tribe (ST) communities to solve socio-economic imbalances between these groups.

• Foreign Investment Policies:

1. The government has eased international investment regulations in specific sectors with the intention to draw worldwide business capital.
2. Manufacturing and technology foreign direct investment receives special tax benefits under the foreign investment policy.

Budget 2025 Key Points Summary

• India predicts annual GDP growth between 6% to 7% during 2025 because it needs to overcome post-pandemic recovery issues.

• The budget aims at providing tax relief for middle-class workers by extending tax exemptions and lowering tax brackets and implementing an easier tax filing initiative.

• Green Growth Focus receives emphasis in the Budget through its investments that target clean energy development along with electric vehicles and green infrastructure projects.

• The government sets 5.5% as the fiscal deficit target for FY 2025 to balance public welfare programs with manageable borrowing levels.

• Infrastructure along with technology implementation and Micro, Small and Medium Enterprises receive major funding to create employment opportunities and decrease unemployment levels.

Finance Minister’s Budget Speech 2025

During her Budget Speech Finance Minister Nirmala Sitharaman expressed her support for inclusive economic development alongside strengthened economic strength. Sitharaman dedicated her speech to show how the government supports infrastructure growth alongside technological enhancements and rural welfare initiatives. The minister emphasized sustainable economy construction through green energy development and digital transformation initiatives during her speech.

Union Budget 2025 Tax Slabs

• Income Tax Slabs for Individuals (Updated):

1. The income tax applied by the government to amounts less than ₹5 lakh is zero along with the revised tax rebate of ₹1.5 lakh which also applies for this bracket.
2. The tax rate for income between ₹5 lakh and ₹10 lakh stands at 20% according to this budget (previously at 25% in previous budgets).
3. Above ₹10 lakh: 30% tax rate (with additional provisions for deductions on investments in green technologies).

• Corporate Tax:

1. The tax rate for MSMEs whose annual turnover reaches up to ₹50 crore now stands at 22% instead of 25% annually.
2. Companies face a 25% corporate tax rate while earning digital, green and technology-based business benefits.

Union Budget 2025 PDF Download

For those looking for the official Union Budget 2025 PDF download, it can be accessed directly from the Ministry of Finance website. The full document will contain detailed breakdowns of allocations, sector-wise investments, tax rules, and the complete speech by the Finance Minister.

Conclusion

The Union Budget 2025 marks a turning point in India’s economic journey, with a strong focus on sustainable growth, technological innovation, and social welfare. By addressing key issues like infrastructure, tax reforms, healthcare, and clean energy, the budget is designed to ensure long-term economic prosperity while tackling immediate challenges.

For more specific details on the complete Union Budget 2025 provisions, refer to the official budget documents released by the Ministry of Finance.

Disclaimer

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.